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An article relating to this blog post on Finextra:

UK police bust Chip and PIN crime factory

Officers from the UK's Dedicated Cheque and Plastic Crime Unit (DCPCU) have raided a counterfeit card factory in Birmingham and seized equipment that could be used to compromise retailer Chip & PIN te...

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Chip and PIN security screen smashed?

The police raid in Brimingham opens a worrying new front for the banking community in the fight against organised card crime. The introduction of Chip & PIN has been a big suceess in stamping out fraud on the high street.

However, it now appears that the criminal community is coming to terms with the new security measures and finding ingenious new ways to beat the system. Word in security circles has it that gangs have developed tiny devices which can be secretly inserted inside the check-out card readers to unscramble codes and reveal customers' pin numbers.

The breakthrough assumes some collusion as the readers have to be phyically removed from the premises, dismantled and returned to the shop in order for the scam to work.

So far 30 shops have fallen victim to the scam, say police. Check out this report in local paper the Newham Recorder for an account of a raid on shoppers at a branch of Somerfield in Forest Gate.


Comments: (1)

Dave Barnes
Dave Barnes - . - Edinburgh 14 August, 2008, 10:48Be the first to give this comment the thumbs up 0 likes

The devices may need to be inserted into the device today, but you could see that in the future, the ability to read these devices from a remote device should be possible, especially with the introduction of the "Tap and Go" type of service.

However, we shouldn't get carried away; C&P is still way more secure than the previous method of signing a paper slip. Who ever managed to get an accurate signature onto the back of one of those cards?

C&P has never been pushed by the industry as foolproof, just an increase in security. And remember, the banks do reimburse people who have been the victims of fraud.